Economic mechanisms for implementing ESG-principles in Kazakhstan's tourism industry

Abstract

With the ESG agenda's global spread, the implementation of sustainable development principles is becoming a significant direction for the tourism industry's transformation. This process is particularly valuable for Kazakhstan, for its economic and institutional diversification of an economy, attracting investments and increasing regional competitiveness. However, despite the establishment of strategic documents and regulatory framework, the implementation of ESG principles in the nation's tourism sector remains to be limited and requires additional financial, human, and technical resources for economic actors.

The aim of the study is to identify and scientifically substantiate the economic mechanisms for introducing ESG principles into Kazakhstan's tourism sector, as well as as well as identifying ways to reduce the perception of ESG implementation as an additional financial burden for tourism enterprises and analysing their role in the sustainable development of the tourism sector and in increasing its investment attractiveness.

The study's findings indicate that the main constraints to the implementation of ESG principles at the industry level are the imbalance between regulatory requirements and economic incentives introduced by the government. In the absence of targeted financial instruments, tightening regulatory requirements by the government will lead to additional financial costs for small and medium-sized enterprises. Therefore, it is reasonable to suggest that the introduction of simplified financing mechanisms, ESG certification instruments, risk-sharing mechanisms, and "green" financial instruments will help reduce investment barriers and improve the economic efficiency of sustainable investments.

The scientific significance of this study lies in its comprehensive analysis of the implementation of ESG principles in the tourism industry as a system of economic incentives, from both institutional and statistical-economic perspectives. The study identifies the role of economic mechanisms that support ESG transformation in the tourism sector and clarifies the theoretical foundations for sustainable development and enhancing the investment attractiveness of the tourism sector. The practical significance of this study lies in the potential use of the proposed mechanisms in implementing public policy aimed at developing sustainable tourism, improving tourism infrastructure modernization programs, and developing economic instruments aimed at attracting investment in Kazakhstan's tourism industry.

Keywords: ESG principles, sustainable tourism, economic mechanisms, government regulation, investment attractiveness.